Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2015

MAYFIELD VILLAGE, Ohio, March 4, 2016 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the fourth quarter and the full year 2015.

Net income for the quarter ended December 31, 2015 was $3,045,000, or $.58 per diluted share, compared to $2,488,000, or $.46 per diluted share, for the comparable period in 2014. Net sales in the fourth quarter of 2015 were $91,961,000 compared to $96,179,000 in the fourth quarter of 2014.

Currency exchange rates had an unfavorable impact on 2015 fourth quarter net sales of $10,547,000, and $36,874,000 for the year. The unfavorable impact on net income was $670,000 for the fourth quarter, and $60,000 for the year.

Net income for the year ended December 31, 2015 was $6,675,000, or $1.24 per diluted share, compared to $12,861,000, or $2.39 per diluted share in 2014. Net sales for 2015 were $354,666,000 compared to $388,185,000 in 2014.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "The fourth quarter was our strongest sales quarter of the year. In local currencies, sales improved 6 ½% over the fourth quarter of 2014. Improvements in our Asia Pacific and Americas segments offset lower sales in our EMEA and U.S.A. segments reflecting the benefit of our geographic diversity. Our full-year results include $4 million of restructuring charges as well as $7.5 million of unrealized currency losses primarily on intercompany transactions compared to $3 million in 2014."

Founded in 1947, Preformed Line Products is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for energy, communications and broadband network companies.

Preformed's world headquarters are in Cleveland, Ohio, and the Company operates two domestic manufacturing centers located in Rogers, Arkansas, and Albemarle, North Carolina. The Company serves its worldwide market through international operations in Argentina, Australia, Brazil, Canada, China, England, France, Indonesia, Malaysia, Mexico, New Zealand, Poland, Russia, South Africa, Spain and Thailand.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the strength of the economy and demand for the Company's products, the Company's ability to develop new products and improve productivity, increases in raw material prices, the Company's ability to identify, complete and integrate acquisitions for profitable growth, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2014 Annual Report on Form 10-K filed with the SEC on March 12, 2015 and subsequent filings with the SEC. The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

PREFORMED LINE PRODUCTS COMPANY STATEMENTS OF CONSOLIDATED OPERATIONS

(In thousands, except per share data)

Three Months Ended December 31

Year Ended December 31

2015

2014

2015

2014

Net sales

$ 91,961

$ 96,179

$ 354,666

$ 388,185

Cost of products sold

65,872

66,331

251,214

267,237

GROSS PROFIT

26,089

29,848

103,452

120,948

Costs and expenses

Selling

7,739

8,645

30,593

35,655

General and administrative

9,281

10,416

36,878

42,563

Research and engineering

3,559

3,945

14,879

16,302

Other operating expense (income) - net

347

2,564

8,753

5,190

20,926

25,570

91,103

99,710

OPERATING INCOME

5,163

4,278

12,349

21,238

Other income (expense)

Interest income

74

138

391

483

Interest expense

(142)

(154)

(565)

(658)

Other income (expense) - net

63

111

(469)

347

(5)

95

(643)

172

INCOME BEFORE INCOME TAXES

5,158

4,373

11,706

21,410

Income taxes

2,113

1,885

5,031

8,549

NET INCOME

$ 3,045

$ 2,488

$ 6,675

$ 12,861

BASIC EARNINGS PER SHARE

Net Income

$ 0.58

$ 0.46

$ 1.25

$ 2.39

DILUTED EARNINGS PER SHARE

Net Income

$ 0.58

$ 0.46

$ 1.24

$ 2.39

Cash dividends declared per share

$ 0.20

$ 0.20

$ 0.80

$ 0.80

Weighted-average number of shares outstanding - basic

5,258

5,354

5,350

5,377

Weighted-average number of shares outstanding - diluted

5,276

5,361

5,366

5,382

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

December 31,

December 31,

(Thousands of dollars, except share and per share data)

2015

2014

ASSETS

Cash and cash equivalents

$ 30,393

$ 29,643

Accounts receivable, less allowances of $2,326 ($2,370 in 2014)

63,626

67,942

Inventories - net

69,912

80,037

Deferred income taxes

8,608

7,249

Prepaids

9,615

9,167

Other current assets

6,343

6,625

TOTAL CURRENT ASSETS

188,497

200,663

Property, plant and equipment - net

91,965

102,531

Other intangibles - net

11,288

14,121

Goodwill

15,821

17,792

Deferred income taxes

5,299

5,773

Other assets

11,703

13,087

TOTAL ASSETS

$ 324,573

$ 353,967

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks

$ 413

$ 1,809

Current portion of long-term debt

110

116

Trade accounts payable

20,377

22,332

Accrued compensation and amounts withheld from employees

9,306

9,876

Accrued expenses and other liabilities

21,685

21,194

TOTAL CURRENT LIABILITIES

51,891

55,327

Long-term debt, less current portion

31,754

31,749

Other noncurrent liabilities and deferred income taxes

21,944

23,966

SHAREHOLDERS' EQUITY

PLPC shareholders' equity:

Common shares - $2 par value, 15,000,000 shares authorized, 5,221,062 and 5,397,138 issued and outstanding, as of December 2015 and December 2014

12,478

12,433

Common shares issued to Rabbi Trust, 296,635 and 292,609 shares at December 31, 2015 and December 31, 2014, respectively

(12,052)

(11,790)

Deferred Compensation Liability

12,052

11,790

Paid-in capital

22,916

22,795

Retained earnings

292,311

289,849

Treasury shares, at cost, 1,018,013 and 819,424 shares at December 31, 2015 and December 31, 2014